FG to raise N340bn bonds in Q4 - DMO

The Debt Management Office (DMO) yesterday disclosed that the Federal Government plans to raise between N250 billion and N340 billion ($794.91 million-$1.08 billion) in local currency-denominated bonds in the fourth quarter.

The debt office said it would auction between 90-120 billion Naira worth of bonds maturing in 2021, 70-100 billion Naira in the debt maturing in 2026 and 90-120 billion Naira worth in the paper maturing in 2036.

DMO said in its latest issuance calendar, that the bonds will be re-opened from previously issued debt.

The government had planned to raise between 305-395 billion Naira worth of debt in the third quarter but ended up issuing 460 billion Naira worth.

The government issues sovereign bonds monthly to fund its budget deficit, support the local bond market and create a benchmark for corporate issuance.

It had had earlier in the year said it will borrow about N900 billion locally to finance part of the N2.2 trillion deficits in its 2016 budget.